June 8, 2011
Fafard & Frères acquires major stake in Heveco
Fafard et Frères Ltd has purchased controlling interest in New Brunswick-based peat producer, Heveco Ltd.

As a result of this transaction, Fafard's harvesting operations are now spread in three provinces, Quebec, Ontario and New Brunswick. This geographic diversification is expected to help reduce exposure to fluctuating weather patterns that can often affect harvesting.

"Heveco has been an important supplier to us for several years now and we are pleased to solidify this relationship with a major ownership position. This ensures our long-term access to Heveco's extensive reserves of high-quality peat, and at the same time enables us to work more closely with its management to develop their products and markets," stated Martin Fafard, President and CEO of Fafard.

An added benefit of this investment is Heveco's block-cut peat which is unique in North America. Fafard notes that the coarser nature of block-cut peat makes it ideal for producing unique top-of-the-line growing mixes.

In addition to the financial investment, Heveco will also benefit from other Fafard resources including its R&D department, and its physical and chemical labs for quality control. Heveco's founding family, the Meckings, continues to hold a significant share of the company and to be actively involved in the day-to-day operations.

Financial support for this transaction was provided primarily by Farm Credit Canada.